All 23 engines are spares; 16 are already owned by the airline, while the remaining seven are future deliveries.

Both transactions entail 10-year operating leases.

“These spare engine sales and leaseback transactions provide the airline with a long-term financing solution for its entire spare engine fleet while mitigating residual value risk and providing competitive cost of ownership over the long term,” says Etihad President and CEO James Hogan.

Sanad, which was launched in February 2010 by Mubadala with multi-million-dollar deals with Etihad and its German partner, Air Berlin, says the latest agreement helps cement Abu Dhabi’s aerospace aspirations. “We are excited to expand our relationship with Etihad Airways through this transaction. It is another significant milestone in our shared mandate to establish Abu Dhabi as a global aerospace hub and expands the foundation for further cooperation and partnership between our companies,” says CEO Troy Lambeth.

This is also a follow-on deal for ELF, a Shannon-based company owned by Boston’s BTMU Capital, which itself is a wholly owned subsidiary of The Bank of Tokyo Mitsubishi UFJ, Ltd.